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A spatial equilibrium model for region size, urbanization ratio, and rural structure
Environment & Planning A
|May 1, 1997
Summary
This study introduces a spatial equilibrium model for city and rural economies, analyzing how market forces determine regional size, urbanization, and rural population distribution. It offers a more realistic framework than previous economic models.
Area of Science:
- Urban economics
- Regional science
- Economic geography
Background:
- Previous economic models of city size often oversimplified rural areas or ignored their spatial structure.
- A need exists for more realistic models incorporating both urban and rural spatial dynamics.
Purpose of the Study:
- To develop a two-sector spatial equilibrium model of a city and its agricultural hinterland.
- To determine market equilibrium outcomes for regional size, urbanization, and rural spatial structure.
- To analyze the impact of exogenous parameters on these outcomes.
Main Methods:
- Utilizing the von Thunen framework for a city-center agricultural hinterland model.
- Developing a two-sector model with industrial and agricultural goods.
- Solving the model numerically and estimating response functions.
Main Results:
- The model determines the spatial size of the region, urbanization ratio, and city population.
- It also defines the rural spatial structure, including wage, population distribution, land rent, and agricultural yield.
- Numerical analysis provides insights into parameter effects.
Conclusions:
- The proposed model offers a more comprehensive understanding of urban-rural economic spatial relationships.
- It addresses limitations of prior models by integrating realistic spatial structures.
- The findings are valuable for urban planning and regional economic policy.